UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF 
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of February 2018

Commission File No.: 000-30668
 
NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

Building 22 Weizmann Science Park, Rehovot
P.O.B 266
Israel
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒ Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Reports Fourth Quarter and Full Year 2017 Results”.

The GAAP financial statements tables included in the press release attached hereto are hereby incorporated by reference into the Registrant’s registration statements on Form S-8, filed with the Securities and Exchange Commission on the following dates: November 5, 2007 (File No. 333-147140); October 25, 2012 (File No. 333-184585), March 6, 2015 (File No. 333-202550); and August 25, 2017 (File No. 333-220158).

SIGNATURES 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

  
 
 
Date: February 13, 2018
 
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)

By: /s/ Dror David
——————————————
Dror David
Chief Financial Officer




Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760
E-mail: info@novameasuring.com
www.novameasuring.com
Investor Relations Contact:
MS-IR LLC
Miri Segal
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
 
 
Company Press Release
 
Nova Reports Fourth Quarter and Full Year 2017 Results

Rehovot, Israel – February 13, 2018 – Nova (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today reported financial results for the fourth quarter and full year 2017, the periods ended December 31, 2017.
 
Fourth Quarter 2017 Highlights:
 
Record quarterly revenue of $57.4 million, up 14% year-over-year, exceeding guidance of $53 to $57 million
GAAP net income of $8.2 million, or $0.29 per diluted share, including non-recurring expense of $3.5 million related to tax provision for prior years, meeting guidance of $0.29 to $0.37 per share
Non-GAAP net income of $13.0 million, or $0.45 per diluted share, exceeding guidance of $0.34 to $0.42 per share
Launched three new metrology solutions, enhancing Nova’s Optical CD and X-ray capabilities in Memory and Logic
 
Full Year 2017 Highlights:
 
Record full-year revenue of $222 million, up 35% year-over-year, outperforming the industry growth pace
Record GAAP net income of $46.5 million, or $1.63 per diluted share, up 365% year-over-year on a per-share basis
Record non-GAAP net income of $55.4 million, or $1.94 per diluted share, up 76% year-over-year on a per-share basis
Continuous customer diversification and growing position in Memory led to record yearly revenue in both Dimensional Optical and Materials X-ray metrology product lines

GAAP Results ($K)
 
Q4 2017
Q3 2017
Q4 2016
FY 2017
FY 2016
Revenues
$ 57,378
$54,058
$50,212
$ 221,992
$163,903
Net Income
$ 8,241
 $11,502
$8,364
$ 46,459
$9,644
Earnings per Diluted Share
$0.29
$0.40
$0.30
$1.63
$0.35
NON-GAAP Results ($K)
 
Q4 2017
Q3 2017
Q4 2016
FY 2017
FY 2016
Net Income
$ 13,021
$13,101
$11,719
$ 55,404
$30,321
Earnings per Diluted Share
$0.45
$0.46
$0.42
$1.94
$1.10
 
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results exclude amortization of acquired intangible assets, net adjustments of deferred tax assets, tax provision for previous years, stock-based compensation expenses, expense related to a royalty buyout agreement with the Israel Innovation Authority, or IIA (formerly known as the Office of the Chief Scientist) and inventory write-off.
 

 
Management Comments
 
“Our record quarterly revenue was an excellent conclusion to a fifth consecutive record revenue year, demonstrating the strength of our diverse product portfolio across all platforms and technology segments,” commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. “2017 was an outstanding year in which our product revenue grew at 42%, outperforming the industry’s growth rates. In parallel, we continued to leverage our operational efficiency, leading to record annual profit”
 
“We believe that our consistent performance, combined with the launch of new offerings, will lead us to continued growth in 2018. Encouraged by our performance in 2017, we intend to continue executing our strategic plan effectively in order to meet our aggressive growth plan while we expand our product portfolio, solidify our market position and improve customer diversification,” Mr. Oppenhaim continued. “As a leading innovator in the metrology space, we intend to continue our growth by investing in the research and development of disruptive solutions, in order to capture emerging metrology markets and strengthen our market position.”
 
2018 First Quarter Financial Outlook
 
Management provided an outlook for the first quarter, the period ending March 31, 2018. Based on current estimates, management expects:
 
$54 million to $60 million in revenue
$0.29 to $0.40 in diluted GAAP EPS
$0.34 to $0.45 in diluted non-GAAP EPS
 
2017 Fourth Quarter Results
 
Total revenues for the fourth quarter of 2017 were $57.4 million, an increase of 6% compared to the third quarter of 2017, and an increase of 14% relative to the fourth quarter of 2016.
 
Gross margin for the fourth quarter of 2017 was 56%, compared with gross margin of 61% in the third quarter of 2017 and equal to gross margin of 56% in the fourth quarter of 2016.
 
Operating expenses in the fourth quarter of 2017 were $19.7 million. This is compared with $18.3 million in the third quarter of 2017 and compared with $17.4 million in the fourth quarter of 2016.
 
On a GAAP basis, the company reported net income of $8.2 million, or $0.29 per diluted share, in the fourth quarter of 2017. This is compared with net income of $11.5 million, or $0.40 per diluted share, in the third quarter of 2017, and compared with net income of $8.4 million, or $0.30 per diluted share, in the fourth quarter of 2016.
 
On a Non-GAAP basis, which excludes amortization of acquired intangible assets, net adjustments of deferred tax assets, tax provision for prior years and stock-based compensation expenses, the company reported net income of $13.0 million, or $0.45 per diluted share, in the fourth quarter of 2017. This is compared with net income of $13.1 million, or $0.46 per diluted share, in the third quarter of 2017, and compared with net income of $11.7 million, or $0.42 per diluted share, in the fourth quarter of 2016.
 
2017 Full Year Results
 
Total revenues for 2017 were $222.0 million, an increase of 35% compared to total revenues of $163.9 million for 2016.
 
Gross margin in 2017 was 59%, compared with gross margin of 46% in 2016, which included $12.9 million of non-recurring expense related to a royalty buyout agreement with the Israel Innovation Authority, or IIA (formerly known as the Office of the Chief Scientist).
 
Operating expenses in 2017 were $73.4 million, compared with operating expenses of $65.1 million in 2016.
 
On a GAAP basis, the company reported net income of $46.5 million, or $1.63 per diluted share, in 2017. This is compared with a net income of $9.6 million, or $0.35 per diluted share, in 2016, which included $12.9 million of expense related to a royalty buyout agreement with IIA.
 
On a non-GAAP basis, which excludes amortization of acquired intangible assets, net adjustments of deferred tax assets, tax provision for prior years, stock-based compensation expenses, expense related to a royalty buyout agreement with IIA and inventory write-off, the company reported net income of $55.4 million, or $1.94 per diluted share, in 2017, compared with net income of $30.3 million, or $1.10 per diluted share, in 2016.
 
Total cash reserves at the end of 2017 were $149.8 million, compared to $91.7 million at the end of 2016.
 

 
Conference Call Information
 
Nova will host a conference call today, February 13, 2018, at 9 a.m. Eastern Time, to discuss the financial results and future outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. Dial-in Number: 1-888-289-0438
ISRAEL Dial-in Number: 1 809-212- 883
INTERNATIONAL Dial-in Number: 1-323-794-2423
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time

The conference call will also be webcast live from a link on Nova's website at http://ir.novameasuring.com. For those unable to participate in the conference call, there will be a replay available from a link on Nova’s website at http://ir.novameasuring.com.
 
About Nova: Nova Measuring Instruments delivers continuous innovation by providing advanced metrology solutions for the semiconductor manufacturing industry. Deployed with the world's largest integrated-circuit manufacturers, Nova's products deliver state-of-the-art, high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high-precision hardware and cutting-edge software, supports the development and production of the most advanced devices in today's high-end semiconductor market. Nova's technical innovation and market leadership enable customers to improve process performance, enhance products' yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices around the world. Additional information may be found at www.novameasuring.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.
 
This press release provides financial measures that exclude charges for amortization of acquired intangible assets, net adjustment of deferred tax assets, tax provision for prior years, stock-based compensation expenses, expense related to a royalty buyout agreement with IIA (formerly known as the Office of the Chief Scientist) and inventory write-off and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhances management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allows greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding, but not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: our dependency on three product lines; our dependency on a small number of large customers and small number of suppliers; the highly cyclical and competitive nature of the markets we target and we operate in; our inability to reduce spending during a slowdown in the semiconductor industry; our ability to respond effectively on a timely basis to rapid technological changes; our ability to recognize the benefits of ReVera acquisition and risks that the acquisition may disrupt current plans and operations and impact relationships with customers, distributors and suppliers; our dependency on PEMs; risks related to exclusivity obligations and non-limited liability that may be included in our commercial agreements and arrangements; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks related to our dependence on our manufacturing facilities; risks related to changes in our order backlog; risks related to efforts to complete and integrate current and/or future acquisitions; risks related to worldwide financial instabilities; risks related to our intellectual property; new product offerings from our competitors; unanticipated manufacturing or supply problems; risks related to government programs we participate in; risks related to taxation; changes in customer demand for our products; risks related to currency fluctuations, risks related to acquisitions we may pursue and risks related to our operations in Israel. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading “Risk Factors” in Nova’s Annual Report on Form 20-F for the year ended December 31, 2016 filed with the Securities and Exchange Commission on March 3, 2017. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Measuring Instruments Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

(Tables to Follow)


 
NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)
 
   
As of December 31,   
 
 
2017
   
2016
 
ASSETS
           
Current assets
           
Cash and cash equivalents
   
27,697
     
20,406
 
Short-term interest-bearing bank deposits
   
121,390
     
70,546
 
Trade accounts receivable
   
40,949
     
42,626
 
Inventories
   
34,921
     
29,260
 
Other current assets
   
7,313
     
5,068
 
                 
Total current assets
   
232,270
     
167,906
 
                 
Long-term assets
               
Long-term interest-bearing bank deposits
   
750
     
750
 
Deferred tax assets
   
1,957
     
3,020
 
Severance pay funds
   
1,503
     
1,425
 
Property and equipment, net
   
13,891
     
10,017
 
Identifiable intangible assets, net
   
12,800
     
15,361
 
Goodwill
   
20,114
     
20,114
 
                 
Total long-term assets
   
51,015
     
50,687
 
                 
Total assets
   
283,285
     
218,593
 
                 
 LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities
               
Trade accounts payable
   
15,754
     
16,501
 
Deferred revenues
   
10,334
     
4,072
 
Other current liabilities
   
26,038
     
18,461
 
                 
Total current liabilities
   
52,126
     
39,034
 
                 
Long-term liabilities
               
Deferred tax liabilities
   
-
     
1,094
 
Liability for employee severance pay
   
2,590
     
2,418
 
Other long-term liabilities
   
1,833
     
1,330
 
                 
Total long-term liabilities
   
4,423
     
4,842
 
                 
Shareholders' equity
   
226,736
     
174,717
 
                 
Total liabilities and shareholders’ equity
   
283,285
     
218,593
 
 

NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except per share data) - (Unaudited)

   
Three months ended
December 31,
   
Year ended
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
                         
Revenues:
                       
Products
   
44,754
     
39,806
     
174,343
     
122,439
 
Services
   
12,624
     
10,406
     
47,649
     
41,464
 
Total revenues
   
57,378
     
50,212
     
221,992
     
163,903
 
                                 
Cost of revenues:
                               
Products
   
17,523
     
15,497
     
62,242
     
48,577
 
Services
   
7,801
     
6,557
     
28,563
     
25,282
 
     Expense related to a royalty buyout agreement with the IIA
   
-
     
-
     
-
     
12,875
 
Inventory write-off
   
-
     
-
     
-
     
1,889
 
Total cost of revenues
   
25,324
     
22,054
     
90,805
     
88,623
 
                                 
Gross profit
   
32,054
     
28,158
     
131,187
     
75,280
 
                                 
Operating expenses:
                               
Research and development expenses, net
   
10,617
     
9,225
     
38,956
     
34,998
 
Sales and marketing expenses
   
5,908
     
5,814
     
23,751
     
20,736
 
General and administration expenses
   
2,558
     
1,702
     
8,100
     
6,835
 
Amortization of acquired intangible assets
   
640
     
636
     
2,561
     
2,545
 
Total operating expenses
   
19,723
     
17,377
     
73,368
     
65,114
 
                                 
Operating income
   
12,331
     
10,781
     
57,819
     
10,166
 
                                 
Financing income, net
   
710
     
190
     
2,276
     
1,216
 
                                 
Income before tax on income
   
13,041
     
10,971
     
60,095
     
11,382
 
                                 
Income tax expenses
   
4,800
     
2,607
     
13,636
     
1,738
 
                                 
Net income for the period
   
8,241
     
8,364
     
46,459
     
9,644
 
                                 
Earnings per share:
                               
Basic
   
0.30
     
0.31
     
1.68
     
0.35
 
Diluted
   
0.29
     
0.30
     
1.63
     
0.35
 
                                 
Shares used for calculation of earnings per share:
                               
                                 
Basic
   
27,873
     
27,292
     
27,696
     
27,175
 
Diluted
   
28,786
     
27,704
     
28,524
     
27,503
 



NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)

   
Three months ended
December 31,
   
Year ended
December 31,
 
   
2017
   
2016
   
2017
   
2016
 
Cash flows from operating activities:
                       
                         
Net income for the period
   
8,241
     
8,364
     
46,459
     
9,644
 
                                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                               
                                 
Depreciation
   
787
     
731
     
3,618
     
4,271
 
Amortization of acquired intangible assets
   
640
     
636
     
2,561
     
2,545
 
Amortization of deferred stock-based compensation
   
899
     
691
     
2,779
     
2,735
 
Increase (decrease) in liability for employee termination benefits, net
   
3
     
(57
)
   
94
     
38
 
Deferred tax assets, net
   
(395
)
   
2,028
     
(31
)
   
633
 
Decrease (increase) in trade accounts receivable
   
(7,395
)
   
(19,068
)
   
1,677
     
(23,580
)
Decrease (increase) in inventories
   
3,050
     
(335
)
   
(6,858
)
   
(1,670
)
Decrease (increase) in other current and long term assets
   
1,187
     
(1,885
)
   
(2,245
)
   
(2,180
)
Increase (decrease) in trade accounts payable
   
(1,869
)
   
4,127
     
(747
)
   
2,123
 
Increase in other current liabilities and other long-term liabilities
   
5,218
     
3,601
     
8,242
     
3,037
 
Increase (decrease) in short and long term deferred revenues
   
(1,092
)
   
(351
)
   
6,262
     
(1,756
)
                                 
Net cash provided by (used in) operating activities
   
9,274
     
(1,518
)
   
61,811
     
(4,160
)
                                 
Cash flow from investment activities:
                               
Decrease (increase) in short-term interest-bearing bank deposits
   
2,443
     
(998
)
   
(50,844
)
   
(1,248
)
Additions to property and equipment
   
(4,171
)
   
(1,518
)
   
(6,295
)
   
(3,133
)
                                 
Net cash used in investment activities
   
(1,728
)
   
(2,516
)
   
(57,139
)
   
(4,381
)
                                 
Cash flows from financing activities:
                               
Purchases of treasury shares
   
-
     
-
     
-
     
(937
)
Shares issued under employee stock-based plans
   
131
     
786
     
2,619
     
2,151
 
                                 
Net cash provided by financing activities
   
131
     
786
     
2,619
     
1,214
 
                                 
Increase (decrease) in cash and cash equivalents
   
7,677
     
(3,248
)
   
7,291
     
(7,327
)
Cash and cash equivalents – beginning of period
   
20,020
     
23,654
     
20,406
     
27,733
 
Cash and cash equivalents – end of period
   
27,697
     
20,406
     
27,697
     
20,406
 


NOVA MEASURING INSTRUMENTS LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
 
   
Three months ended
 
   
December 31,
2017
   
September 30,
2017
   
December 31,
2016
 
GAAP cost of revenues
   
25,324
     
21,179
     
22,054
 
  Stock-based compensation in cost of products
   
(107
)
   
(113
)
   
(88
)
  Stock-based compensation in cost of services
   
(89
)
   
(57
)
   
(54
)
Non-GAAP cost of revenues
   
25,128
     
21,009
     
21,912
 
                         
GAAP gross profit
   
32,054
     
32,879
     
28,158
 
  Gross profit adjustments
   
196
     
170
     
142
 
Non-GAAP gross profit
   
32,250
     
33,049
     
28,300
 
GAAP gross margin as a percentage of revenues
   
56
%
   
61
%
   
56
%
Non-GAAP gross margin as a percentage of revenues
   
56
%
   
61
%
   
56
%
                         
GAAP operating expenses
   
19,723
     
18,277
     
17,377
 
  Stock-based compensation in research and development
   
(346
)
   
(259
)
   
(247
)
  Stock-based compensation in sales and marketing
   
(216
)
   
(95
)
   
(211
)
  Stock-based compensation in general and administrative
   
(141
)
   
(145
)
   
(91
)
  Amortization of acquired intangible assets
   
(640
)
   
(641
)
   
(636
)
Non-GAAP operating expenses
   
18,380
     
17,137
     
16,192
 
Non-GAAP operating income
   
13,870
     
15,912
     
12,108
 
GAAP operating margin as a percentage of revenues
   
21
%
   
27
%
   
21
%
Non-GAAP operating margin as a percentage of revenues
   
24
%
   
29
%
   
24
%
                         
GAAP tax on income
   
4,800
     
3,726
     
2,607
 
  Deferred tax assets adjustments, net
   
312
     
(289
)
   
(2,028
)
  Tax provision for prior years
   
(3,553
)
   
-
     
-
 
Non-GAAP tax on income
   
1,559
     
3,437
     
579
 
                         
GAAP net income
   
8,241
     
11,502
     
8,364
 
  Amortization of acquired intangible assets
   
640
     
641
     
636
 
  Stock-based compensation expenses
   
899
     
669
     
691
 
  Deferred tax assets adjustments, net
   
(312
)
   
289
     
2,028
 
  Tax provision for prior years
   
3,553
     
-
     
-
 
Non-GAAP net income
   
13,021
     
13,101
     
11,719
 
                         
GAAP basic earnings per share
   
0.30
     
0.41
     
0.31
 
Non-GAAP basic earnings per share
   
0.47
     
0.47
     
0.43
 
                         
GAAP diluted earnings per share
   
0.29
     
0.40
     
0.30
 
Non-GAAP diluted earnings per share
   
0.45
     
0.46
     
0.42
 
                         
Shares used for calculation of earnings per share:
                       
  Basic
   
27,873
     
27,788
     
27,292
 
  Diluted
   
28,786
     
28,601
     
27,704
 
 

NOVA MEASURING INSTRUMENTS LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
 
   
Year ended December 31,
 
   
2017
   
2016
 
GAAP cost of revenues
   
90,805
     
88,623
 
  Expense related to a royalty buyout agreement with the IIA
   
-
     
(12,875
)
  Inventory write-off
   
-
     
(1,889
)
  Stock-based compensation in cost of products
   
(370
)
   
(342
)
  Stock-based compensation in cost of services
   
(268
)
   
(218
)
Non-GAAP cost of revenues
   
90,167
     
73,299
 
                 
GAAP gross profit
   
131,187
     
75,280
 
Gross profit adjustments
   
638
     
15,324
 
Non-GAAP gross profit
   
131,825
     
90,604
 
GAAP gross margin as a percentage of revenues
   
59
%
   
46
%
Non-GAAP gross margin as a percentage of revenues
   
59
%
   
55
%
                 
GAAP operating expenses
   
73,368
     
65,114
 
  Stock-based compensation in research and development
   
(1,055
)
   
(983
)
  Stock-based compensation in sales and marketing
   
(621
)
   
(884
)
  Stock-based compensation in general and administrative
   
(465
)
   
(308
)
  Amortization of acquired intangible assets
   
(2,561
)
   
(2,545
)
Non-GAAP operating expenses
   
68,666
     
60,394
 
Non-GAAP operating income
   
63,159
     
30,210
 
GAAP operating margin as a percentage of revenues
   
26
%
   
6
%
Non-GAAP operating margin as a percentage of revenues
   
28
%
   
18
%
                 
GAAP tax on income
   
13,636
     
1,738
 
  Deferred tax assets adjustments, net
   
(52
)
   
(633
)
  Tax provision for prior years
   
(3,553
)
   
-
 
Non-GAAP tax on income
   
10,031
     
1,105
 
                 
GAAP net income
   
46,459
     
9,644
 
  Amortization of acquired intangible assets
   
2,561
     
2,545
 
  Expense related to a royalty buyout agreement with the IIA
   
-
     
12,875
 
  Stock-based compensation expenses
   
2,779
     
2,735
 
  Deferred tax assets adjustments, net
   
52
     
633
 
  Tax provision for prior years
   
3,553
     
-
 
  Inventory write-off
   
-
     
1,889
 
Non-GAAP net income
   
55,404
     
30,321
 
                 
GAAP basic earnings per share
   
1.68
     
0.35
 
Non-GAAP basic earnings per share
   
2.00
     
1.12
 
                 
GAAP diluted earnings per share
   
1.63
     
0.35
 
Non-GAAP diluted earnings per share
   
1.94
     
1.10
 
                 
Shares used for calculation of earnings per share:
               
  Basic
   
27,696
     
27,175
 
  Diluted
   
28,524
     
27,503